>So if I reference in the HTML a graphic that's not on the internet but on the senders hard disk that will work?

Yes I used CDO 2000 for stuff like that.

> Does have to be as an attachment & I reference the attachment in the HTML?

No

>
>I also want to get this working with Outlook Automation if possible, as with CDO there's no actual evidence that the email has been sent IE no sent items or outbox so to speak.

I think you can do the same with Outlook 2007 (as I suggested before). Not sure about previous Outlook versions.

With CDO you can always sent a copy of email (BCC) to a special email address for history keeping